Located in a depression among the hills Esquel and Nahuel Pan, it overcomes their history to the beginnings of the Colony 16 de Octubrer, at the end of the XIX century .
At the beginning of XX century they existed some isolated houses here on the river Esquel. It is considered 1906 as the year of their foundation. To the initial nucleus of Welsh origin they are added Italian, Chilean, Syrian, Lebanese and other immigrants. Esquel becomes the main center of supply of the Welsh colony, the surrounding stays and the indigenous reservations.
In 1925 the Rural Society of Esquel was founded that carried out annual exhibitions until today. In the decade of the 30 the Anonymous Society settles down Importadora and Exporter ("The Anonymous" one) with an important warehouse of general fields and in 1937 the National Park Los Alerces settled down that it impelled the tourism to the region.
In 1945 Esquel it was annexed to the rail system when the first train of narrow trail called popularly La Trocita popularly.
The railroad meant more communications, trade and resources. Starting from the decade of the 50 the Andean Club Esquel began its mountain activities and it developed an incipient ski.
Starting from 1973, with the Hydroelectric Power station Futaleufú the area received an economic impulse that, next to the tourism, they influenced in the city. In this decade and the following one, the Center of Ski of The Valley was developed.
Esquel, registered a strong populational growth these last years.